Sugar Cosmetics raises ₹144.5 crore at ₹755 crore valuation, 75% below 2022 peak

A91 Partners led the primary round as Sugar’s FY25 revenue fell 20% to ₹404 crore and net loss nearly doubled to ₹135 crore. Early investors are also exploring discounted secondary stake sales of up to ₹150 crore.

— Source publishedFri, 4 Sept, 2026, 22:09 IST·First seen Fri, 4 Sept, 2026, 22:11 IST·Source Entrackr · Newsletter

What happened

India D2C beauty brand Sugar Cosmetics raised Rs 144.5 crore from A91 Partners at an estimated Rs 755 crore post-money valuation, 75% below its 2022 peak.

Key facts

  • Rs 144.5 crore primary funding
  • 1,12,248 Series CCPS
  • Rs 12,871 per share
  • Rs 755 crore post-money valuation
  • 75% below peak valuation
  • Rs 3,000 crore peak valuation
  • A91 Partners stake: 19.97%
  • Potential secondary stake sales: up to Rs 150 crore
  • Minimum secondary transaction size: around Rs 25 crore
  • FY25 revenue: Rs 404 crore, down 20% from Rs 505 crore in FY24
  • FY25 net loss: Rs 135 crore, versus Rs 68 crore in FY24
  • 2022 Series D: $50 million
  • 2022 valuation: about $400 million

Why this matters

Discounted secondary sales and a lower primary-round valuation could create an acquisition or strategic-partnership opening for beauty players seeking an established D2C brand with repositioning potential.

What to watch

  • FY26 quarterly revenue trajectory and whether the FY25 20% decline reverses.
  • Gross margin, EBITDA/net-loss trend and evidence that marketing spend is becoming more efficient.
  • Scale, price and buyer mix of the proposed up-to-₹150-crore secondary transactions.
  • Any store-closure, expansion-slowdown, SKU-pruning or workforce-rationalisation announcements.
  • Follow-on funding, bridge financing or strategic-investor interest within the next 12 months.
  • Market-share movement versus Nykaa, Purplle, Lakme, Mamaearth and other omnichannel beauty competitors.
  • Prioritise contribution-margin-positive SKUs, cities and channels; cut low-return performance marketing and discounting.
  • Use the primary round to protect availability in high-velocity products rather than aggressively expanding physical retail.
  • Separate secondary-sale process from operating fundraising to limit signalling damage and avoid a prolonged valuation overhang.
  • Explore strategic distribution, manufacturing and retail partnerships that can reduce working-capital needs and customer-acquisition costs.
  • Reset employee retention and ESOP communication following the sharp valuation decline.

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